Based on the expectations-augmented Phillips curve, if the natural rate of unemployment is 0.06, and if the actual inflation rate exceeds the expected inflation rate, then the unemployment rate is
A) less than 0.06.
B) 0.06.
C) more than 0.06.
D) 0.06 plus 0.5 times the difference between actual and expected inflation.
A
Economics
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Other fundamental things being equal, an increase in the exchange-rate value of the domestic currency will cause the current account to
A. become smaller than the (nonofficial) financial account. B. move toward a deficit. C. move toward a long-run equilibrium. D. become more unbalanced.
Economics
Investing in a mutual fund made up of hundreds of stocks of different companies is an example of all of the following except:
A. risk reduction. B. diversifying. C. spreading risk. D. increasing the variance of a portfolio.
Economics